Wednesday, March 25, 2009
FreeSeas Obtains Lender Covenant Waivers and Creates Additional Financial Flexibility
Wednesday, 25 March 2009
FreeSeas Inc., a transporter of dry-bulk cargoes through the ownership and operation of a fleet of seven Handysize vessels and two Handymax vessels, announced yesterday that it has obtained covenant waiver agreements from each of its bank lenders and has refinanced the existing credit facility for the Free Maverick. Mr. Ion Varouxakis, President and CEO of FreeSeas, stated, "These modifications to our loan agreements, coupled with recent charter announcements, have provided FreeSeas with a greater level of operational and financial flexibility. We closely worked with our commercial lenders in negotiating these waivers, and the process involved extensive due diligence on their part. We feel that their willingness to work with us reflects the quality of FreeSeas' fleet and charter agreements, the outlook for our business model, and the positive changes in the dry bulk market over the past few weeks. To a lesser extent, we believe these waivers position us for growth as we see unprecedented opportunities for acquisitions at current market prices."
Source: Freeseas Inc.
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